Quote:
Originally posted by RSharpe
I don't see what you're getting at.
Let's look at ibill or ccbill: you rake in 100K a month so that's 600K in 6 months. 15% (reserve) is about 90K. So if you're making 100K consistently, you always have 90K tied up in reserves with ibill or ccbill.
With Epoch, they charge 5% so in 6 months you just have 30K tied up with them. It will take you 18 months to make up a reserve that took you just 6 months to make with the other processors.
How is it any different other than the fact that you keep more of your money for longer. I think it's a pretty good deal really but what do I know ....
=RS=
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It's 5% with all processors. Pretty standard I think. So, $30k tied up after 6 months, but then you start to get it back, so if your sales stay consistent, you only have 30k tied up. With Epoch/paycom, you have to get to 100k in reserve to get it back, and that is assuming your sales stay consistent. If they grow, it's even more than 100k.
Month Sales Reserve Total Held Total Needed
1 100k 5k 5k 100k
2 110k 5.5k 10.5k 110k
3 120k 6k 16.5k 120k
4 130k 6.5k 23k 130k
5 140k 7k 30k 140k
6 150k 7.5k 37.5k 150k
7 160k 8k 45.5k 160k
8 170k 8.5k 54k 170k
9 180k 9k 63k 180k
10 190k 9.5k 72.5k 190k
11 200k 10k 82.5k 200k
12 210k 10.5k 93k 210k
This table isn't going to come out right, but you will prolly get the idea..... (The spaces aren't going to work)
etc
etc
etc
.... so when do you FINALLY get your reserve bacK? Kind of sucks, huh? Btw, total needed is how much you need in reserve in order for them to refund it. And just think how much they're making off YOUR money while they have it...... and what if you never get to the point where you have the total gross in reserve? What if you decide to cash out... well, guess what? You have to wait EIGHTEEN months from the date of your LAST transaction (and some people rebill for yrs) before you get your money.. so basically you might as well write it off.... you'll get it 5 yrs later or something
